Brussels, 7 July 2026 – Carbon Management Europe published a position paper setting out five priorities for the forthcoming review of the EU Emissions Trading System (EU ETS). Developed through Carbon Management Europe's unique multi-stakeholder membership, the paper reflects a shared vision from industrial producers, energy companies, infrastructure developers, financial institutions, environmental NGOs and research organisations.
These recommendations aim to preserve the integrity of the EU ETS while strengthening support for industrial decarbonisation. As Europe's principal carbon pricing instrument, the EU ETS plays a central role in driving investment in low-carbon technologies and industrial carbon management. The forthcoming review will align the EU ETS with the recently agreed 2040 climate target under the European Climate Law and establish its long-term trajectory towards climate neutrality by 2050. Maintaining a robust and predictable carbon pricing framework throughout this transition will be essential to enable industrial decarbonisation while preserving Europe's competitiveness.
Aymeric Amand, Policy and Research Director at Carbon Management Europe, says:
Europe doesn't need to reinvent the EU ETS. It needs to preserve what works, improve what doesn't, and ensure the wider policy framework gives industry the confidence to invest in decarbonisation at scale.
The paper identifies five priorities:
- Maintain consistency of the EU ETS with climate objectives. This includes preserving the agreed phase-out of free allocation alongside an effective and watertight CBAM, while ensuring that the Market Stability Reserve continues to support a predictable and credible carbon price signal.
- Direct a greater share of EU ETS revenues towards industrial decarbonisation, including strategic CO2 transport and storage infrastructure and project de-risking.
- Ensure the Industrial Decarbonisation Bank focuses on cost-effective decarbonisation, supporting the commercial deployment of industrial decarbonisation solutions through a technology-neutral approach.
- Establish coherent and simplified carbon accounting for CO2 capture and transport to enable the large-scale deployment of industrial carbon management value chains while maintaining environmental integrity.
- Integrate permanent carbon removals with caution, ensuring robust safeguards that preserve the integrity of the system and maintain incentives for direct emissions reductions.
Carbon Management Europe also stresses that the EU ETS review should not be considered in isolation. While carbon pricing is a powerful driver of industrial decarbonisation, its effectiveness depends on a broader policy framework that enables investment, provides long-term revenue certainty, creates demand for low-carbon products, and accelerates the deployment of strategic CO2 transport and storage infrastructure. In particular, the paper highlights the role of the Industrial Accelerator Act, the Net-Zero Industry Act, and the
forthcoming CO2 Market and Infrastructure Regulatory Framework in creating a coherent policy framework.
This review will be critical to ensuring that the EU ETS continues to provide a robust carbon price signal, contribute to Europe's climate objectives, and deliver the investment certainty needed to strengthen industrial competitiveness. Carbon Management Europe looks forward to working with policymakers and stakeholders to preserve the integrity and effectiveness of the EU ETS while strengthening support for industrial decarbonisation.
About Carbon Management Europe
Carbon Management Europe is the official advisor to the European Union on industrial carbon management. Our mission is to enable and accelerate the deployment of carbon management technologies across Europe to help achieve climate neutrality.
Since 2005, our platform has brought diverse stakeholders together to share knowledge, find common ground, and turn technical expertise into science-based policy advice for EU institutions and European governments.
We work with a broad range of members, including industrial companies, energy producers, civil society organisations, technology and infrastructure developers, financial actors, and research and academic institutions.
Press enquiries: Amélie Trémolières, Communications Manager.